Broadridge has acquired foreign exchange technology company TwoFour Systems in a bid to meet rising demand for foreign exchange and cash management technology in financial institutions.
The TwoFour technology provides front-to-back office integration and straight-through processing, and works with foreign exchange, exchange traded funds, options, interest rate derivatives and money market instruments.
In addition, a cash management solution aims to provide fast intra-day aggregation and reporting of balances and cash flows, allowing companies to view detailed data on their position in the global market.
Richard Daly, president and CEO of Broadridge, said: “This acquisition advances our strategy to deliver powerful multi-asset class solutions to our clients globally.”
He added: “It is one of the latest developments in our ongoing tuck-in acquisition strategy, which continues to bring innovative technologies to our clients and strong internal rates of return to Broadridge.”
TwoFour will be rebranded as Broadridge FX and Liquidity Solutions and will operate within Broadridge’s Global Technology and Operations division.
Broadridge will integrate the TwoFour technology in to its reconciliations processes, aiming to create a solution that supports various cash and liquidity processes.
Tom Carey, Broadridge president of global technology and operations, said: “TwoFour’s technology will enhance Broadridge’s ability to provide solutions to its clients within a critical asset class, enabling banks, payment companies and broker-dealers to expand their offerings and revenue streams. We are delighted to have these solutions, experienced management, and highly skilled people enhancing our overall solution capabilities.”
Steve Davis, former CEO of TwoFour Holdings and now general manager of the newly formed Broadridge FX and Liquidity Solutions, said: “TwoFour’s technology, market strategy and high-touch, client-centric approach directly align with Broadridge’s mission to help financial institutions mutualise costs and increase efficiencies, and we are thrilled to become part of the Broadridge family.”
“As part of Broadridge we are better-positioned than ever to enable banks, payment companies and broker-dealers around the world to use this flexible and dynamic offering to capitalise on the opportunities in the foreign exchange markets.”
The transaction was officially finalised on 30 December 2014.
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